After the initial growth and after a certain level of awareness has been achieved, established sports betting providers often find themselves on a plateau on which any further growth and consequently further revenue increases can only be achieved very slowly and with difficulty. But there are better ways than large marketing efforts and expensive bonus campaigns to stimulate stagnant growth again.
The following 3 approaches can help sports betting providers achieve new growth and take their business to the next level:
1) New brands for new audiences
With a multi-brand strategy, the entire market is addressed simultaneously with two or more brands running in parallel. The different brands are often designed for different target groups (e.g. for cultural differences).
The most important thing in any type of multi-brand strategy is that the potential customers recognize a clear distinction and can understand it as credible (brand differentiation). Brand differentiation in a multi-brand strategy can be based on several concepts and can be categorized in different ways:
- Brands for different target groups (age, culture, experience, sport, etc.)
- Brands with factual and functional differences (product design)
- Brands with emotional properties that add value (image)
The advantages of a multi-brand strategy:
- there is less space on the market for competitive products
- the dominance as a sports betting provider is being expanded
- customers who change brand can be intercepted within your own brand system
- Different customer groups can be targeted with different products
Sports betting providers can, for example, address culturally different target groups in different countries, for example by using different brands with adapted looks and feel and targeted brand messages (keyword: feminine vs. masculine cultures). Another option is to align a multi-brand strategy within a country to target groups with different requirements, such as customers who are sports betting professionals on the one hand and customers who have little or no experience in sports betting on the other.
One method with which you can get to know your customers and their requirements exactly is what is known as customer segmentation. You can learn more about this here:Sport betting business bntelligence: Customer segmentation.
2) Differentiation through product development
After a (prospective) sports betting provider has determined his target market and carried out a competitor analysis, he must ask himself how he wants to set himself apart from the competition with his sports betting platform.
Question: How can I convince customers to bet with me of all providers?
It is usually very difficult as a new provider to enter the market with products that are very similar or identical to the established competition. The idea that the same product will lead to the same success is not necessarily correct. Instead, it is crucial at this point to stand out sufficiently from the competition and to gain a market advantage through differentiation. The development of new products in the context of sports betting is an excellent opportunity to gain a lead over the competition and to optimally pick up certain target groups.
Simplicity: the simpler and more intuitive a sports betting product and the associated processes, the higher the acceptance among bettors. Classic sports betting platforms are often very overloaded (“number graveyard”) and offer very little user friendliness. As a result, sports betting newbies often find it very difficult to find their way around and do not experience the betting experience the provider is aiming for.
In order to be able to pick up customers who have little or no experience in sports betting with your own platform, it is advisable to proceed according to the principle “less is more”. The clearer and more native the user experience, the higher the chance that customers will be satisfied. Unlike betting professionals, beginners often cannot do anything with the huge selection of leagues and events, as well as the 100+ different market types offered and instead bet on the end results of popular events and leagues. Frontends, which guide the user as intuitively and as “uncomplicated” as possible through the processes of event selection and submission of tips, are therefore preferable. In the same way, a mobile-first approach should be aimed for in the front-end development, not only because the majority of sports bets are now placed on smartphones anyway, but also with the betting habits of non-professional customers in mind.
Gamification: In the sports betting industry, the game and fun factor has been neglected for a long time. For the vast majority of betting customers, sports betting platforms usually only differ in color. Gamification is an extremely important and successful means of acquiring customers and stimulating betting. Playing on your own platform just has to be more fun than the competition.
Der Spaß-Faktor stellt einerseits ein gutes Werkzeug zur Differenzierung zum Angebot des Mitbewerbs dar, andererseits wird dadurch ein zusätzlicher Wettstimulus erzielt – denn wer Spaß bei der Sache hat, wettet mehr. Above all, the aforementioned customer groups with less betting experience can be optimally motivated and picked up.
3) Licensing for new opportunities
The majority of European markets, as well as many international markets, are now regulated and usually have a state-regulated licensing process. In order to be able to offer sports betting legally in these markets, providers must obtain such a gambling license.
However, a license may not only be necessary for general legal operation. Most of the common online payment methods now also require a valid gambling license. The availability of payment providers for a sports betting platform is linked to the compliance guidelines of the respective payment provider and the existence of a valid sports betting license and represents one of the greatest challenges for new and existing sports betting providers. Providing an appropriate selection of means of payment for its customers, however, has many advantages: on the one hand, a selection tailored to the payment habits of the respective target market leads to more deposits, since the deposit barrier (as it occurs, for example, with unknown means of payment) for the customers is lowered, on the other hand the offer of well-known payment methods such as Visa, Mastercard or Paypal also leads to a higher level of trustworthiness as a provider.
The possibilities in the field of marketing also depend heavily on the regulation of gambling advertising – as an unlicensed sports betting provider, advertising via Google, Facebook, etc. is often not possible in regulated markets, and advertising in TV and print media is usually on the existence of a valid license is linked. More information on this topic can usually be found at the relevant authority in the respective country.
For a sports betting provider, applying for a license can be both necessary and an essential advantage, depending on the targeted market. The license requirements usually revolve around compliance, money laundering protection, as well as youth and player protection, although the exact criteria vary from country to country.
Read more on the topic KYC in sports betting here:KYC – Challenges for sports betting providers
The experts at Arland will be happy to advise you individually on how you can become even more successful with your sports betting business. If you are interested or have any questions, just write to us at [email protected]